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This article originally appeared on HSMAI Europe.
In September 2024, the European hotel market exhibited a balanced mix of growth and resilience, primarily fueled by regional and international demand. Across Europe, the hospitality industry posted moderate growth in Average Daily Rates (+1.8%), and Revenue per Available Room (+1.2%), despite slight fluctuations in certain segments.
However, strong KPI growth trends in Iberia, Germany or Central & Southern Europe have been partly offset by decreases in hotel activity in other countries & key markets like London, France, Italy or Belgium.
The global occupancy rate for European hotels in September 2024 reached 77.5%, which represents a minor decline of 0.5 percentage points compared to the previous year. However, despite this slight decrease in occupancy, the upscale segment demonstrated particular resilience. The occupancy rate on that category increased to 79.7%, a notable rise of 1.5 points, underscoring the continued strength of premium hospitality options across the continent.
This segment also recorded a 3.7% growth in RevPAR from 2023 (and +12.5% from 2022), with ADR climbing to €233.8, highlighting strong demand for that segment.
In terms of hotel categories, budget and economy segments experienced some challenges, with occupancy in the budget category (more exposed to the UK and France) declining to 70.4%, while the midscale and upscale segments delivered stronger performance. The midscale category maintained an occupancy rate of 78%, with moderate ADR growth of 0.8%. The upscale segment saw an increase in RevPAR by 3.7%.
September 2024 was a month of positive but mixed performance for the European hotel market. Despite slight declines in occupancy in certain segments and cities, the overall dynamic remained favorable, especially in the upscale and midscale categories. Events such as La Mercè Festival and Paris Fashion Week played a crucial role in boosting hotel performance across key cities. Countries like Spain, Portugal and Greece saw significant growth in ADR and RevPAR, underscoring their strength as destinations for both leisure and business travelers, while Germany also continued to recover. Meanwhile, other countries like France, the UK, Italy or Belgium recorded decreasing performances.
